Benefits of Logistics Loyalty Programmes

1. Benefits of Logistics Loyalty Programmes Supply chains are getting bigger and bigger with each passing day and so are logistics. Logistics is an important element of the supply chain. There is a great demand for efficient logistics partners for almost every business, especially for import and export businesses. Although complex, logistics is a rewarding business. Naturally, there is fierce competition among logistics companies around the globe for acquiring more and more businesses to increase their profitability. However, it is very difficult to get new clients, so the best way to keep logistics companies operational is to retain the existing customers. Here logistics loyalty programs come into play. A loyalty program can be defined as a marketing strategy to encourage customers to keep returning by giving certain discounts, rewards and special incentives. One famous example of a loyalty program is Amazon Prime. The members are treated as loyal customers and few incentives are given to them in the form of discounts than non-member customers. These customers are rewarded with reward points, free delivery and access to an OTT platform. Likewise, there are many companies all over the world which run loyalty programs to attract customers. Even the logistics companies have logistics loyalty programmes or cargo loyalty programmes to lure freight forwarders, importers-exporters and other businesses. Loyalty programs are beneficial to the companies offering them and to the customer using their services. For companies, it gives stable customers who keep returning. This helps in planning their activities and offering better services to them. Let us look at a few benefits of logistics loyalty for the customers: Discounts: Regular customers or members get heavy discounts on the logistics charges. It might be in the form of a percentage or allowing extra cargo at the same price. Offers: Some logistics companies give offers to their loyal customers in the form of cashback or reward points which can be redeemed the next time. Door-to-Door Pick-up: Customers who wish to send the cargo have to arrange the logistics from their manufacturing unit or warehouse to the ports. But, members get the privilege of the door-to-door pickup. Customs Clearance Documents: Documentation for customs clearance is a tedious job, especially for new and small businesses. It requires time, manpower and legal help. However, under the logistics loyalty programme, some companies assist the small timers and first timers in preparing the documents for customs clearance to facilitate quick and hassle-free clearance.

2. Freebies: Some logistics companies offer freebies to customers after completing preset criteria like a certain amount of business or referring new customers. The freebies may be in the form of cash rewards or items like a laptop, mobile etc. or even a vacation package. On the other hand, logistics loyalty programs benefit the companies too. Some of the benefits include: Customer Retention: In the era of cut-throat competition, retaining existing customers is a big ask, leaving apart acquiring new ones. The loyalty programs help in attracting customers so that the business keeps coming from them. Planning: Members are regular customers. The companies keep a track of their activities and predict their future activities, thus helping in further planning. Getting New Customers: Referencing is the best way of marketing. By offering certain loyalty rewards to existing customers, logistics companies can get new customers. Getting Business During the Slack Season: During the slack season, the business is less. However, by giving certain incentives, companies can prompt customers to use their service during this period. This helps in getting a steady flow of cash even during the slack season. Brand Awareness: Loyalty programs create brand loyalty amongst customers. Happy customers are the best marketers for any brand. When the customers get better service at a reasonable cost, they recommend it to others as well. This helps in brand awareness and ultimately increases the profit.